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Have Insiders Been Buying Azarga Metals Corp. (CVE:AZR) Shares?

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Azarga Metals Corp. (CVE:AZR), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.

We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.

Check out our latest analysis for Azarga Metals

The Last 12 Months Of Insider Transactions At Azarga Metals

Director Vladimir Pakhomov made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.6m worth of shares at a price of CA$0.15 each. That means that an insider was happy to buy shares at above the current price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. It’s not at all bad to see insiders buy shares at or above current prices.

Over the last year, we can see that insiders have bought 22.22m shares worth CA$3.3m. On the other hand they divested 118.95k shares, for CA$24k. Overall, Azarga Metals insiders were net buyers last year. Their average price was about CA$0.15. I’d consider this a positive as it suggests insiders see value at around the current price, which is CA$0.12. You can see the insider transactions over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

TSXV:AZR Insider Trading December 21st 18
TSXV:AZR Insider Trading December 21st 18

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Azarga Metals insiders own 68% of the company, currently worth about CA$7.4m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Azarga Metals Insider Transactions Indicate?

It doesn’t really mean much that no insider has traded Azarga Metals shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Azarga Metals insiders feel good about the company’s future. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

But note: Azarga Metals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

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